New Jersey Suspends PokerStars’ Licence to Operate in that State

 

The New Jersey Division of Gaming has suspended the application submitted by PokerStars for two years.

Last month Stars spokesman Eric Hollreiser explained in a tweet that PokerStars is still being reviewed by the DGE but is committed to completing the process.  Without this licence, PokerStars will not be allowed to operate in the United States. However, regulators have offered to review the application under certain circumstances.

The stated reason for the New Jersey Division of Gaming Enforcement’s decision is PokerStars’ continued association with its founder, Isai Scheinberg, who remains under federal indictment. Scheinberg was indicted in 2011 for violating the Unlawful Internet Gambling Enforcement Act and the Illegal Gambling Business Act.

“The Division’s determination is based primarily on the unresolved federal indictment against Isai Scheinberg for the alleged violation of federal gambling statutes, namely, the Illegal Gambling Business Act and the Unlawful Internet Gambling Enforcement Act (UIGEA), and the involvement of certain PokerStars executives with Internet gaming operations in the United States following the enactment of UIGEA,” the New Jersey DGE said in its statement.

Scheinberg’s legal predicament has dire consequences for PokerStar’s chances of entering the US online gambling market.

“We are disappointed that the N.J. Division of Gaming Enforcement has suspended the review of our application at this time,” Eric Hollreiser, a PokerStars spokesman, said in a statement. “We note that the DGE will resume the review of our application if our circumstances change. We will remain in open dialogue with the DGE and will update them on changes in our situation as they occur.”

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